In times of economic turbulence and social movements, understanding consumer behaviour is even more critical. The Aurora Dipstick Consumer Survey, conducted online between May 5 and May 15, 2024, set out to explore the relationship between inflation, the global Boycott, Divestment, Sanctions (BDS) movement, and consumer purchasing patterns among Aurora and Dawn readers. The survey consisted of 13 questions and garnered a total of 1,099 responses.

This analysis delves into the demographic nuances of how different age groups, genders, and geographic locations have responded to inflation and the BDS movement. It provides insights into the adaptive strategies consumers employ to navigate rising costs, from shifting to non-branded products to re-evaluating brand loyalty.

As hypothesised, 85% of participants are affected by inflation, demonstrated through changes in spending habits and brand loyalties. The survey highlights the impact of the BDS movement on consumer decision-making, indicating a shift towards more politically conscious consumption, demonstrated by 73% of participants altering their consumer patterns as a result of the BDS movement.

1. INFLATION AND ITS IMPACT ON PURCHASING POWER

In examining the spending habits of consumers, results showed that 85% of overall participants have been affected by inflation and as a result, have altered their spending habits: 45% ‘spend a little less’ and 40% ‘spend considerably less’. Inflation has led to changes in consumption patterns across all age groups, but the Aurora Survey identified some notable differences among them.

Boomers: 22% reported ‘no change’ in their consumption patterns, which is 7% higher than the overall average. Conversely, 32% stated ‘considerably less,’ which is 8% less than the overall average. This suggests that while a significant portion of Boomers have been affected by inflation, there is also a notable subgroup that has managed to maintain their consumption levels.

Gen Alpha: Although the sample size for Gen Alpha was small (only four respondents), 75% of them reported spending considerably less. This high percentage may indicate that younger consumers are more sensitive to inflationary pressures or have less financial flexibility to maintain their spending levels.

Less-metropolitan cities: The survey also noted that residents of less-metropolitan cities were more likely to ‘spend considerably less’ (56%), which is 16% more than the overall average of 40%. This could be due to a variety of factors, including potentially lower incomes or less access to resources in nonmetro areas. For residents of less-metro cities, consumption of household goods and transport has been impacted by more than 6% than the overall respondents.

Women’s consumption of beauty products has been impacted by 14% more than the overall respondents. Their consumption of electronic devices and utilities has been impacted by 9% and 7% less than the overall respondents.

Boomers were impacted by 7% more than the overall respondents when it comes to transport and utilities. Gen X’s consumption of food has been impacted more than the overall respondents by 7%. Their consumption of household goods (7%), electronic devices (10%) and utilities (6%) has been impacted less than the overall respondents.

The survey identified clothing and apparel, food and beverages, beauty and personal care, and electronic appliances as the most impacted consumption categories, with 59% (food & beverages) to 63% (electronic appliances) of respondents indicating reduced spending in these areas. Boomers showed a higher impact in transport and utilities, while Gen X had a greater impact on food consumption.

The exceptions and variations among different age groups and geographic locations highlight the complexity of how inflation affects consumer behaviour and the importance of considering demographic factors in understanding these changes.

2. BRAND LOYALTY AND BUYING LOCAL

In terms of brand loyalty, 44% of respondents opted for cheaper brands to save money, while 13% remained loyal to their usual brands.

• Boomers were less likely to remain brand loyal and more likely to switch to cheaper options.

• The majority of respondents (71%) have started to purchase non-branded goods as a result of inflation.

• The non-branded product categories that have seen an increase in purchasing include clothing and apparel (57%), food and beverages (53%), household/ cleaning products (44%), and beauty and personal care products (37%).

• Fewer Boomers and Gen X opt for non-branded beauty and household products; similarly, fewer Gen Z spend on non-branded household products.

• Compared to other age groups, 7% more Boomers purchase nonbranded items compared to the overall respondents. 100% of Gen X opt for non-branded products.

Buying local was a priority for many, with 45% considering it ‘very much’ and only 12% stating ‘not at all’.

• Boomers and Gen Alpha showed a stronger inclination towards buying local.

• Ethical and political considerations played a role in purchasing decisions, with 44% considering these factors ‘very much’ and only 15% ‘not at all’.

3. THE BOYCOTT, DIVESTMENT, SANCTIONS MOVEMENT

The BDS movement encourages individuals to boycott certain products or brands from and associated with Israel, which is the subject of this particular boycott. In the context of the survey, it appears that consumers are considering the ethical and political implications of their purchases and are willing to alter their buying habits accordingly. The movement has led to degrees of changes in consumer purchasing habits. This shift is more pronounced among certain demographics, such as women, and varies by product category, with some items being more resilient to boycott than others.

The survey revealed that women were particularly influenced by the BDS movement, with 10% more women than the overall average indicating that they had changed their purchasing habits due to BDS, indicating a higher level of engagement or sensitivity among women to the issues raised by the movement.

Furthermore, the survey asked respondents to specify the types of products or brands they were likely to keep boycotting in line with the BDS movement. Beverages, food, clothes, all products and beauty products were most likely to be boycotted by approximately 103-433 respondents, possibly due to the growing availability of local alternatives.

Simultaneously, products like beverages, beauty products, food, medicine, household goods and electronic appliances were least likely to be boycotted by approximately 50-125 respondents, suggesting that certain items may be considered non-negotiable despite the BDS movement’s influence, in some cases due to the unavailability of local alternatives.

• 73% of respondents changed their purchasing habits in response to the BDS movement. This suggests a considerable shift in consumer behaviour in Pakistan.

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FINDINGS

Inflation Affects Almost Everyone: The majority of consumers (85%) have adjusted their spending habits due to inflation, opting to spend less across various product categories.

Demographic Differences: The impact of inflation on consumption patterns varies by age group, gender and geographic location. Boomers show a mixed response to many of the questions, with a notable number maintaining their spending habits, while Gen Alpha and residents of nonmetropolitan residents have reduced their spending.

Shift to Non-Branded and Local Products: The majority of respondents (71%) are purchasing more non-branded products and prioritising local goods as a strategic (or necessary) response to economic pressures. This trend was particularly pronounced among Boomers and Gen Alpha. Consumers are seeking to economise by choosing less expensive alternatives without compromising on essential items.

Ethical and Political Awareness: The consideration of ethical and political implications in purchasing decisions, as well as the influence of the BDS movement is interpreted as a trend among consumers.

Differential Impact by Product Category: The survey observed that the impact of inflation and the BDS movement varies by product category, with some items being more resilient to boycott than others.

Data collection and analysis by Mansoor Muhammad, Researcher.